Market Orientated Strategic Planning is the managerial process of developing and maintaining available fit between organizations objectives/skills/resources and its changing market objectives. The aim is to shape/reshape the companies’ business product so that they yield target profits/growth. The Strategic Planning Action areas include-Managing company’s portfolio as an investment portfolio, Assessing each business accurately by considering markets growth rate and company’s position and fit in that market, and Developing a strategy (game plan) to achieve long run objective.

Strategic planning takes into account that large organization consist of four organizational Levels-Corporate Level, Division Level, Business Unit level, and Product Level. Corporate HQ creates a corporate strategic plan to guide the whole enterprise to a profitable future. Each division creates a divisional plan covering allocation of funds to each business unit within division. Each business unit develops a Business unit strategic plan to carry that business unit to a profitable future. Each product level develops a marketing plan to achieve its objectives in a product market.

An organization exists to accomplish something, this is its specific mission and purpose. Company mission is shaped by the History (of aims, policies, achievements), Current Preference of Owner/Management, Market environment, Resources (Mission should be achievable),and Distinctive competencies (Company should base its mission on what it does best).

Companies often define their businesses in terms of products. e.g. Auto Business:Market definitions of businesses may be better i.e. business viewed as customer satisfying process rather than goods producing process. Business may be defined using three dimensions- Customer groups, Customer needs, and TechnologyEg: for a software company developing application software for co-operative banks.Customer group - Co-operative banksCustomer needs - Transaction ProcessingTechnology - Application Software platform.

Purpose of identifying each SBU is to develop separate strategies and assign appropriate resources. Business portfolio may include Future winners, Past champions or Current bread winners. To go beyond impressions, one needs analytical tools to clarify each SBU on its right profit potential. The Analytical tools could be BCG Model and GE model. Company’s plans for existing business allow it to project total sales/profits over time period.

Company’s plans for existing business allow it to project total sales/profits over time period. If the projected sales/profits are less than what corporate management desires , there is a gap in the strategic plan. To bridge the gap, the following alternatives are there - Intensive growth, Integrative growth and Diversification growth.

Intensive Growth opportunities are opportunities to achieve further growth in the company’s current businesses. This is normally the first course of action for growth, and also the easiest. This include Market Penetration, Market Development Strategy, Product Development Strategy and New Product Development.

Integrative growth refers to an increase in sales/profits thru integration within the industry. This generally happens through integration. The types of integration are-Backward (Acquire supplier), Forward (Acquire wholesaler/retailer), and Horizontal (Acquire competitor with government approval)

Diversification growth makes sense when good opportunity can be found outside present business. A good opportunity is that in which the industry is highly attractive. The company has the required business strategy to be successful.